While the transformative potential of blockchain technology is large, there are a multitude of barriers that prevent its implementation from becoming mainstream.
Here are the three primary barriers to blockchain adoption and how we can handle them.
1. Poor or non-existent regulation.
Lack of regulation is the root of much distrust t in the blockchain space.
Facebook recently announced its upcoming cryptocurrency, Libra. As a result, the company has faced much scepticism due to lack of regulations and adequate anti money-laundering measures – so much scepticism, in fact, that it may never actually launch.
One of its major partners, eBay, pulled out of the Libra Association on Friday, October 4th. The project also lost its product manager in August.
So where exactly are we going wrong with regulation, and how can we implement blockchain in real-life situations without facing regulatory distrust?
Businesses need to collaborate with regulatory bodies. The problem is that both cryptocurrency and blockchain platforms, as a whole, threaten the power of governments over data and money. Countries can control fiat currency. Blockchain is secure, anonymous and largely uncontrollable.
This is its primary benefit – and yet it is also its biggest threat.
To ensure that we can have a regulated but still decentralized economy, blockchain companies must ensure that their platforms, products or cryptocurrencies are verified by the required regulatory boards before they are launched. Collaboration between companies and government and regulatory bodies is the only way forward.
2. Lack of understanding and capabilities.
For several years now, blockchain has been constantly trying to outrun its reputation. Even today, if you mention blockchain, you might receive the answer, ‘That’s Bitcoin, right?’ Many people do not understand what blockchain is, what it can be used for and why, exactly, it’s lauded as being so transformative.
While education about decentralization and democratization of trust can help, the true value is showing people how blockchain can help them.
In developing countries, for example, the power of blockchain’s decentralization may lack substance until framed within the context of crypto wallets and increased safety.
People want to know the benefit of blockchain for them – not everyone else. This is what we must demonstrate.
3. Few successful implementations to encourage blockchain adoption.
In a survey conducted by Deloitte, three-fifths of senior executives want to see measurable success in blockchain over the next three years. Nearly 60 percent of respondents were confident in blockchain’s long-term ability.
Blockchain still lacks a myriad of real-life implementations. So where, exactly, is the gap?
As more and more people understand blockchain and why we should implement it, blockchain is becoming more recognised for its capabilities on an executive business level. Increasingly, large companies such as IBM and Walmart are showing faith in blockchain – and showing how, exactly, it can work. Time is, perhaps, the only thing that will truly give people faith in the technology, as well as the ability to see how it can be implemented by fast-movers and innovators.
Yet we can still make changes ourselves, and that starts with collaboration, understanding and education.
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